The shares of the steel manufacturer gained up to 3.5 percent after the board of the company fixed the record date for the stock split in the ratio of 1:10.
With a market capitalization of Rs 1,465.41 crore, the shares of Kamdhenu Ltd were trading at Rs 528.30 per share, increasing around 3 percent as compared to the previous closing price of Rs 510.85 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Kamdhenu Ltd’s board fixed Wednesday, 8 January 2025 as a record date for the stock split in the ratio of 1:10 which means existing equity shares of the company have a face value of Rs 10 each fully paid‐up into equity shares having face value of Rs 1 each fully paid up.
Financial performance:-
Examine the company’s financial condition, revenue zoomed by 3 percent from Rs 185 crore in Q2FY24 to Rs 190 crore in Q2FY25, and during the same time frame, net profit magnified by 60 percent from Rs 10 crore to Rs 16 crore.
Industry Overview:-
India’s steel demand is set to grow, targeting 300 MMT capacity by 2030. In Q2 FY ’25, revenue grew 3% YoY to ₹190 crore, with sales volume rising 11% to 8.3 lakh metric tons. Own manufacturing volumes increased 8% despite regional flooding challenges.
Strategic Initiatives:-
The company is driving premiumization, raising the average selling price per kg from Rs 58 in FY15 to Rs 79 in H1 FY25. It plans to expand its dealer network from 4,364 to 5,000, aiming for a Rs 1,000 crore turnover and a 15% EBITDA margin in paints.
Future Outlook:-
The management is optimistic about growth in steel and paint segments, driven by government infrastructure support and rising demand for branded products. They anticipate a 15% increase in TMT bar demand for FY25, fueled by infrastructure projects and government initiatives.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 24.61 percent in FY22-23 to 21.11 percent in FY23-24, while the return on capital employed decreased from 31.71 percent to 27.07 percent. The net profit margin (NPM) for fiscal year 23-24 is 6.91 percent.
Company Update:-
Kamdhenu Limited is an India-based company, which is manufactures, marketing, brands, and distribution thermo mechanically treated (TMT) bars, structural steel, paints, and allied products under the brand name KAMDHENU. The Company’s business activities include the manufacturing of basic iron and steel, the manufacture of structural metal, etc.
Written by:- Abhishek Singh
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